Moody's downgrades China's credit outlook to negative on debt worries
Moody's Investors Service on Tuesday changed China's government credit ratings outlook from stable to negative. This decision comes as a result of concerns about China's lower medium-term economic growth and increasing debt. Moody's predicts that China's annual GDP growth will be around 4.0% in 2024 and 2025, and an average of 3.8% from 2026 to 2030. The negative outlook suggests that Chinese authorities may need to step in and provide financial support for debt-ridden local governments and state firms.